Industry-leading, simplified pricing
The original promise of cloud computing was simple: virtualize hardware, pay only for what you use, with no upfront capital expenditures and lower prices than on-premise solutions. But pricing hasn’t followed Moore's Law: over the past five years, hardware costs improved by 20-30% annually but public cloud prices fell at just 8% per year.

We think cloud pricing should track Moore’s Law, so we’re simplifying and reducing prices for our various on-demand, pay-as-you-go services by 30-85%:

App Engine pricing is drastically simplified. We've lowered pricing for instance-hours by 37.5%, dedicated memcache by 50% and Datastore writes by 33%. In addition, many services, including SNI SSL and PageSpeed are now offered to all applications at no extra cost.

Cloud Storage is now priced at a consistent 2.6 cents per GB. That’s roughly 68% less for most customers.

Sustained-Use discounts
In addition to lower on-demand prices, you’ll save even more money with Sustained-Use Discounts for steady-state workloads. Discounts start automatically when you use a VM for over 25% of the month. When you use a VM for an entire month, you save an additional 30% over the new on-demand prices, for a total reduction of 53% over our original prices.

Sustained-Use Discounts automatically reward users who run VMs for over 25% of any calendar month

With our new pricing and sustained use discounts, you get the best performance at the lowest price in the industry. No upfront payments, no lock-in, and no need to predict future use.

Making developers more productive in the cloud
We’re also introducing features that make development more productive:

Build, test, and release in the cloud, with minimal setup or changes to your workflow. Simply commit a change with git and we’ll run a clean build and all unit tests.

Aggregated logs across all your instances, with filtering and search tools.

Detailed stack traces for bugs, with one-click access to the exact version of the code that caused the issue. You can even make small code changes right in the browser.

We’re working on even more features to ensure that our platform is the most productive place for developers. Stay tuned.

Introducing Managed Virtual Machines
You shouldn't have to choose between the flexibility of VMs and the auto-management and scaling provided by App Engine. Managed VMs let you run any binary inside a VM and turn it into a part of your App Engine app with just a few lines of code. App Engine will automatically manage these VMs for you.

Real-Time Big Data
BigQuery lets you run interactive SQL queries against datasets of any size in seconds using a fully managed service, with no setup and no configuration. Starting today, with BigQuery Streaming, you can ingest 100,000 records per second per table with near-instant updates, so you can analyze massive data streams in real time. Yet, BigQuery is very affordable: on-demand queries now only cost $5 per TB and 5 GB/sec reserved query capacity starts at $20,000/month, 75% lower than other providers.

Conclusion
This is an exciting time to be a developer and build apps for a global audience. Today we’ve focused a lot on productivity, making it easier to build and test in the cloud, using the tools you’re already familiar with. Managed VMs give you the freedom to combine flexible VMs with the auto-management of App Engine. BigQuery allows big data analysis to just work, at any scale.

And on top of all of that, we’re making it more affordable than it’s ever been before, reintroducing Moore’s Law to the cloud: the cost of virtualized hardware should fall in line with the cost of the underlying real hardware. And you automatically get discounts for sustained use with no long-term contracts, no lock-in, and no upfront costs, so you get the best price and the best performance without needing a PhD in Finance.

We’ve made a lot of progress this first quarter and you’ll hear even more at Google I/O in June.